Retail Foreign Exchange Dealer

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An RFED is an individual or organization which acts, or offers to act, as a counterparty to an off-exchange foreign currency transaction with a person who is not an eligible contract participant and the transaction is either:

  • a futures contract, an option on a futures contract or an option contract (except options traded on a securities exchange); or
  • offered or entered into, on a leveraged or margined basis, or financed by the offeror, counterparty or person acting in concert with the offeror or counterparty on a similar basis.

Registration is required unless the individual or organization is exempt from registration as an RFED pursuant to Sections 2(c)(2)(B) or 2(c)(2)(C) of the Commodity Exchange Act.

All RFEDs must be Members of NFA in order to conduct business with the public. Additionally, an RFED is required to have at least one principal that is also an approved Forex Associated Person.[1][2]